Strategie Grains Sees EU 2010-11 Cereal Output Broadly Steady

European Union cereal production is expected to be virtually unchanged at 292 million metric tons in 2010-11 compared to the previous harvest year, Strategie Grains said in its monthly report published Thursday.

Wheat production is forecast to rise 3% to 133.7 million tons in 2010-11. The rise in wheat production is offset by a 6% decline in forecast barley production, a 13% decline in forecast rye production, and a 3% decline in other cereals for the same period.

The firm raised its wheat production forecast this month by 380,000 tons to 133.7 million tons due to higher crop area forecasts and therefore higher output in Romania and Germany.

An increased wheat area in Germany comes at the expense of barley plantings. Estimated barley production in Germany has been revised downward by 400,000 tons this month and overall EU barley production was revised downward by 530,000 tons to 58.2 million tons in 2010-11.

CME Group